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Offshore wind centre stage as UK sets out Clean Growth Strategy

The UK government reinforced the pivotal role of offshore wind in its low-carbon future as it pledged to study potential deployment of turbines at sea “in the late 2020s and beyond”, as part of a Clean Growth Strategy that also includes ambitious goals in areas such as electric vehicles, storage and green industrial expansion.

The Clean Growth Strategy reiterates earlier announcements that further ongoing offshore wind cost reductions “could result in 10GW of new capacity built in the 2020s” as the government continues to negotiate a so-called ‘Sector Deal’ with the industry.

The strategy document adds: “We will work with [seabed owners] the Crown Estate and the Crown Estate (Scotland) to understand the potential for deployment of offshore wind in the late 2020s and beyond.”

The UK has made offshore wind the focus of its renewables strategy, with 5.4GW in place and a pipeline that includes the world’s largest projects, Dong Energy’s 1.2GW and 1.4GW Hornsea 1 and 2.

Contract-for-difference support auctions in September saw power prices fall by half in two years for the 3.2GW of offshore wind backed, and the government on Wednesday said the next auction will be held in spring 2019, with a further pool of up to £557m ($734m) on offer for future rounds.

By contrast, onshore wind – which has been shut out of the CfD process – was barely mentioned in the Clean Growth Strategy document. The exception to that was the planned inclusion of remote Scottish island projects in the next auction.

However, the onshore sector is hoping its tumbling power-price credentials will be recognised in a government review of energy costs currently underway, the recommendations of which ministers “will incorporate...into our further policy development as appropriate”.

On PV, which is also locked out of large-scale support, the strategy document says: “We want to see more people investing in solar without government support and are currently considering options for our approach to small-scale low carbon generation beyond 2019, and will provide an update later this year.”

There was a limited endorsement for the UK’s fledgling wave and tidal sector, however. “More nascent technologies such as wave, tidal stream and tidal range, could also have a role in the long-term decarbonisation of the UK, but they will need to demonstrate how they can compete with other forms of generation,” said the strategy document.

UK business and energy secretary Greg Clark said: “For the first time in a generation, the British government is leading the way on taking decisions on new nuclear, rolling out smart meters and investing in low carbon innovation.

“The world is moving from being powered by polluting fossil fuels to clean energy. It’s as big a change as the move from the age of steam to the age of oil and Britain is showing the way.”

The official announcement included an endorsement from Juergen Maier, UK head of German industrial giant Siemens, whose British interests include the Siemens Gamesa offshore wind plant in Hull.

Maier said: “Clean growth is good growth and the UK has a great opportunity to lead. Siemens welcomes the launch of the government’s Clean Growth Strategy which sets a clear direction for business and puts decarbonisation at the heart of the industrial strategy.”

Other headlines from the Clean Growth Strategy include:

An electric vehicle push that will include aid to consumers to meet the upfront cost of electric cars and development of “one of the best electric vehicle charging networks in the world”

A new mechanism to replace the Levy Control Framework, which governs energy support

Ambitions for world leadership in design and manufacture of electric batteries

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Offshore wind centre stage as UK sets out Clean Growth Strategy

The UK government reinforced the pivotal role of offshore wind in its low-carbon future as it pledged to study potential deployment of turbines at sea “in the late 2020s and beyond”, as part of a Clean Growth Strategy that also includes ambitious goals in areas such as electric vehicles, storage and green industrial expansion.

The Clean Growth Strategy reiterates earlier announcements that further ongoing offshore wind cost reductions “could result in 10GW of new capacity built in the 2020s” as the government continues to negotiate a so-called ‘Sector Deal’ with the industry.

The strategy document adds: “We will work with [seabed owners] the Crown Estate and the Crown Estate (Scotland) to understand the potential for deployment of offshore wind in the late 2020s and beyond.”

The UK has made offshore wind the focus of its renewables strategy, with 5.4GW in place and a pipeline that includes the world’s largest projects, Dong Energy’s 1.2GW and 1.4GW Hornsea 1 and 2.

Contract-for-difference support auctions in September saw power prices fall by half in two years for the 3.2GW of offshore wind backed, and the government on Wednesday said the next auction will be held in spring 2019, with a further pool of up to £557m ($734m) on offer for future rounds.

By contrast, onshore wind – which has been shut out of the CfD process – was barely mentioned in the Clean Growth Strategy document. The exception to that was the planned inclusion of remote Scottish island projects in the next auction.

However, the onshore sector is hoping its tumbling power-price credentials will be recognised in a government review of energy costs currently underway, the recommendations of which ministers “will incorporate...into our further policy development as appropriate”.

On PV, which is also locked out of large-scale support, the strategy document says: “We want to see more people investing in solar without government support and are currently considering options for our approach to small-scale low carbon generation beyond 2019, and will provide an update later this year.”

There was a limited endorsement for the UK’s fledgling wave and tidal sector, however. “More nascent technologies such as wave, tidal stream and tidal range, could also have a role in the long-term decarbonisation of the UK, but they will need to demonstrate how they can compete with other forms of generation,” said the strategy document.

UK business and energy secretary Greg Clark said: “For the first time in a generation, the British government is leading the way on taking decisions on new nuclear, rolling out smart meters and investing in low carbon innovation.

“The world is moving from being powered by polluting fossil fuels to clean energy. It’s as big a change as the move from the age of steam to the age of oil and Britain is showing the way.”

The official announcement included an endorsement from Juergen Maier, UK head of German industrial giant Siemens, whose British interests include the Siemens Gamesa offshore wind plant in Hull.

Maier said: “Clean growth is good growth and the UK has a great opportunity to lead. Siemens welcomes the launch of the government’s Clean Growth Strategy which sets a clear direction for business and puts decarbonisation at the heart of the industrial strategy.”

Other headlines from the Clean Growth Strategy include:

An electric vehicle push that will include aid to consumers to meet the upfront cost of electric cars and development of “one of the best electric vehicle charging networks in the world”

A new mechanism to replace the Levy Control Framework, which governs energy support

Ambitions for world leadership in design and manufacture of electric batteries